L1 Long Short Fund

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Question asked 09/07/2022

L1 Long Short Fund

Hi James. I currently hold shares in L1 Long Short Fund (LSF). They have had a good track record and I like the fact that they use shorts (currently around 25% of their portfolio) and the directors are heavily invested through on market buys. It is an active fund but fees look high. Do you have an opinion on this ETF? Love the upgraded MM site. Regards David

Answer

Hi David – LSF a listed investment company rather than an ETF so it can trade at a discount or premium to the value of its underlying portfolio of assets where as as ETF will not. Currently, shares are trading at $2.50 versus NTA at $2.70 which is a large discount, typical in these sorts of vehicles when markets get jittery.

These guys are good although they did have a very poor start to listed life with performance struggling from the outset. Fee’s are on the high side as you point out, and they are aggressive in their approach to the market, so performance can have quiet large swings. We have a preference for our own approach but we certainly have nothing against LSF, and we do hold it in some portfolios that I manage via Shaw.

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L1 Long Short Fund

LAST UPDATED 06/07/2022 15:56

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